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Income Tax Appellate Tribunal, ‘’A’’ BENCH, AHMEDABAD
Before: SHRI KUL BHARAT & SHRI WASEEM AHMED
Consolidated Appeals (14)
(Applicant) (Responent) Revenue by : Shri S.K. Dev, Sr. D.R Assessee by : 1. Shri S.N. Divatia 2. Shri Tushar P. Hemani 3. Shri D.K. Parikh 4. Shri M.J. Shah 5. Shri Mehul K. Patel 6. Shri B. Soparkar 7. Shri G.M. Thakor 8. Shri Hem Chhajed सुनवाई क� तार�ख/Date of Hearing : 27/08/2019 घोषणा क� तार�ख /Date of Pronouncement: 30/09/2019 आदेश/O R D E R PER BENCH:
The above appeals and Co’s have been filed by the Revenue and the assessee against the orders of ld. Commissioner of Income-Tax (Appeals) involving respective assessment years. The tax effect involved in all these appeals does not exceed Rs 50,00,000.00 in each of these appeals. The cross objections taken up for hearing are emanating from these appeals and largely support the orders passed by the ld. Commissioner (Appeals).
The Central Board of Direct Taxes vide Circular No. 17 of 2019 dated 8.8.2019 has raised threshold monetary limits for filing Departmental Appeals before the Appellate Tribunal. Accordingly, the and 19 others 4 CBDT has instructed the Department not to file appeals before the Income Tax Appellate Tribunal where tax effect including surcharge is below Rs. 50.00 lakhs. This circular is applicable to the pending appeals also. The relevant extract of the circular issued dated 8 August 2019 reads as under:
“2. As a step towards further management of litigation. it has been decided by the Board that monetary limits for filing of appeals in income- tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly. the table for monetary limits specified in Para 3 of the Circular shall read as follows: S.No. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000”
From the above, it is clear that the impugned appeals filed by the Revenue are not maintainable as the tax effect is less than ₹50 lakhs. This fact can also be verified from the grounds of appeal filed by the Revenue along with the memo of appeal.
In this behalf, when a query was raised by the Bench, the ld. Departmental Representatives though, in principle, did not dispute the applicability of the above CBDT circular in the present cases, but submitted that liberty may be given to the Department to apply for the recall of the order in such cases where tax effect, on further verification of the record, is found to be more than Rs. 50 lakhs, or such cases which are mistakenly listed and summarily dismissed due to low taxes. The ld. counsels appearing for the assessees though argued for dismissal of the and 19 others 5 appeals of the Revenue in accordance with the above CBDT Circular, but agreed to the proposition put forth by the ld. DR.
We find that on 8.8.2019 the CBDT has issued Instructions bearing No. 17 of 2019 prohibiting its subordinate authorities from filing of the appeal before the Tribunal against order of the CIT(A) where the tax effect by virtue of the relief given by the CIT(A) is less than Rs.50 lakhs. The instructions have been made applicable with retrospective effect, meaning thereby, these instructions are applicable on pending appeals also. In the present cases, “tax effect” on the total income assessed minus the tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issue against which appeal is filed, is less than Rs.50 lakhs. Further, it has not been pointed out to us, whether any of the cases of the Revenue fall within the ambit of exceptions provided in the Circular. Thus, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeals of the Revenue deserve to be dismissed. They are accordingly dismissed.
However, it is observed that in case on re-verification at the end of the AO it can be demonstrated that the tax effect is more, or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order relatable to such cases. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeals of the Revenue are dismissed due to low tax effect.
So far CO No.46/Ahd/2018 is concerned, ld. counsel for the assessee submitted that the same is in support of the order of the ld.CIT(A), and it may be disposed off accordingly. In view of this submission of the counsel, no separate adjudication is required in this behalf. Accordingly, the COs filed by the assessee are dismissed.
In the result, all the appeals of the Revenue are dismissed due to low tax effect and Cross Objection of the assessees are dismissed as infructuous.
Order pronounced in the Court on 30/09/2019 at Ahmedabad.